Medical indemnity premiums are down for the third straight year, with the Australian Competition and Consumer Commission (ACCC) finding prices at Australia’s six providers to be generally and actuarially justified.

The ACCC annual report on medical indemnity insurance found premiums on average fell 6% in 2005/06, to $5537.

The watchdog has been monitoring the cost of medical indemnity since the collapse of United Medical Protection in May 2002, Australia’s largest provider at the time.

The report found providers’ charges were justified but questioned the reliance on insurers to determine expenses, reinsurance and surplus components.

It also found one insurer did not meet its minimum capital requirement, but noted the parent organisation would inject more funds in 2006/07.

Assistant Treasurer Peter Dutton says professional cover is available and affordable for doctors, and the reforms of 2002 are having an effect.

The providers of medical indemnity insurance are Australasian Medical Insurance, Invivo Medical, MDA National Insurance, Medical Insurance Australia, MIPS Insurance and Professional Indemnity Insurance Company Australia.